There are benefits to scaling on chain, but as above, its not sustainable.
Encouraging transactions that don't need to be stored on-chain forever and a day would be better batched up. You can then at least still verify your address balances.
Verification of larger blocks scales quite well. Testers have proven this: https://read.cash/@mtrycz/how-my-rpi4-handles-mining-256mb-b...
What seems lost in this discussion is the idea that there can be (and maybe should be) a middle ground. Scale on-chain to the extent that technology allows and enables it. Surely, computers today are able to handle much more than Satoshi's computer in 2009, right? Simultaneously, building out off-chain scaling methods should also be encouraged. We don't need to put all our eggs in one basket.